Bitcoin has undoubtedly become the world first decentralized digital currency; it uses cryptographic techniques to ensure secure online transactions. Since its release in 2010, it has grown to be a leading player in online transactions and is rapidly gaining legitimacy across the world. USA, Canada, Australia, Iceland among others are actively involved in bitcoin trade.
Among the more than 500 crypto-currencies available today, bitcoin still have the “first mover” advantage. Tax authorities and enforcement agencies worldwide are grappling with this phenomenon since its use has awakened the proliferation of online underworld activities like bitcoin casinos. This has been worsened by the fact that bitcoin is never issued, endorsed or regulated by any known commercial or central bank.
Just like their southern neighbors the USA, Canada has exhibited a rather bitcoin friendly stance since its release, laws have been enacted to ensure that crypto-currency are not used for money laundering purposes. The Canadian Revenue Authority taxes all incomes generated through bitcoin transaction.
Bitcoin gambling regulations in Canada
The first national law regulating the use of bitcoin in Canada came with massive effects on digital currency powered businesses particularly the online gambling industry. In early 2000, the Royal Accent, Bill C-31 was amended to regulate all crypto-currency operations in Canada. Another Bill i.e. Proceeds of Crime & Terrorist Financing Act of 2000 provided due scrutiny on all incomes from bitcoin transactions.
However, many have in the past argued that these legal provisions do not directly affect bitcoin casinos since it only uses the phrase “dealing in virtual currencies” without expounding much. If these laws are fully enforced, it is expected that it will go to great lengths in regulating operations and proceeds from bitcoin casinos.
Furthermore, the law will require all players and gamers to register with the FINTRAC (Financial Transactions and Reports Analysis Center of Canada) of which failure to do so will result to heavy penalties.
According to www.bitcoingg.com, the existence of these laws have had visible effect on bitcoin and crypto-currency gambling markets with the two-dice betting sites being the first casualties.
With Canada reporting success rates in the implementation of these laws, spectators are keenly watching if at all they will take toll. It is worth noting that it is illegal to provide online gambling services, of any type to Canadians unless approved and licensed by the government. The only flaws on the regulation is the inability to curtail the operations of overseas operators.